Hello Again, $40k — June 15

Chart of the Day

$40k! Phew. After establishing a strong foothold above $38.5k and the 100-hourly moving average, the price of Bitcoin could be on track to extend its gains to the upper $41k region in the near term. In the macro world, the recent rally stands in stark contrast to the decelerating central bank asset purchases. Historically — though the timeframe is too short to discern any definitive pattern — the peak of each Bitcoin cycle coincides with year-on-year growth in major central bank balance sheets. With the Fed dismissing the current inflation red flag as “transitory”, we have reasons to believe that if the trend of debt monetization were to continue, it could trigger greater interests in defensive assets, including cryptocurrencies.

Talk of the Town

MicroStrategy, big appetite for Bitcoin. Mere hours after completing the $500 million debt offering to fund its Bitcoin acquisition, MicroStrategy signaled an ever-growing appetite and may be gearing up to buy MORE — we’re talking about $1 billion worth of “more”. The software/Bitcoin-holding company has filed with the SEC for permission to sell its stock over time as needed. The net proceeds from the sale will be channeled to “general corporate purposes, including the acquisition of bitcoin.” Apparently, living through Bitcoin’s “price halving” didn’t deter MicroStrategy from advancing its audacious treasury strategy.